FX.co ★ Iceland Unemployment Rate Jumps in July

Iceland’s seasonally adjusted unemployment rate climbed to 6.3% in July 2026, up from 5.0% in June, marking its highest level in four months. The number of unemployed increased by 3,000 from the previous month, reaching 14,500. By gender, the unemployment rate for men rose sharply, from 3.4% in June to 5.7% in July, while the rate for women was unchanged at 7.0%. Youth unemployment, covering job seekers aged 16 to 24, dropped markedly to 6.4% from 12.0% a month earlier. Meanwhile, the employment rate edged down to 73.8%, as the number of employed persons declined by 600 to 216,700. The labor force participation rate ticked up slightly to 78.7% from 78.6%. On a non-seasonally adjusted basis, Iceland’s unemployment rate decreased to 5.5% in July from 3.9% in June.